Upgrade Distribution list to O 365 group criteria not enforced from Exchange admin

I tried to upgrade a Distribution Group through Exchange admin where message approval is enabled. The Distribution group got upgraded without any issues whereas the documentation says the moderated distribuion lists are not eligible for upgrade !!

Blocked words policy only works when you create a Group from OWA...we still don't have the Azure AD policy for blocked words. In regards of the upgrade of moderated distribution lists I think @Christophe Fiessinger could help here